Jun 27, 2022
In Elder Care Forum
Shopping habits are changing. The e-commerce surge of 2020 has many Banner Design businesses facing increased product returns. These two things often go hand in hand. As the overall rate of online shopping increases, so will the number of product returns. However, changing buying habits could outperform traditional models and eat into your profit margins. To understand the impact of product returns on the post-COVID-19 e-commerce landscape, Yotpo has released a new survey on the current state of product returns. ( Disclosure: I work at Yotpo.) The insights reveal that the best way to reduce product returns isn't a better shipping system (although that can also help), but through technology and on-site communication. What is the commercial cost of product returns? A store's Banner Design return policy is an important factor in the purchasing decision. Advertising Continue reading below It's just not an option for brands not to offer returns. Around 70% of survey participants said the return policy was important to their buying decision. If a fee is charged for returns, 59% said they would not order from this store. About half of attendees say they've abandoned Banner Design an online order because of the return policy. The ability to return is so important to customers, and the best business strategy is not to limit the customer's ability to return. Instead, the goal should be to reduce the customer's need or desire to return. This involves hacking the customer mindset Banner Design and improving the customer journey interface. What is the main reason people return purchases? Return reasons vary by industry and brand. Advertising Continue reading below However, the All Brands National Survey reveals that fit is the number one reason many people return an item, with 65% of shoppers Banner Design citing this reason for their return purchases. Product description not matching the item prompted 39% of shoppers to return items, and 33% said they returned products because they looked different in person. There is also the problem of buyers buying with the intention of returning. Among all shoppers, 35% over-order when shopping online, but the rate is even higher among younger shoppers. Among millennials, 43% buy with the intention of returning products, and Banner Design for Gen Z, that jumps even further to 46%. This behavior also varies by industry. Buyers buying household items or products like coffee are unlikely to place orders with returns in mind. However, this behavior is very strong in the fashion industry with 66% of shoppers saying they ordered more items than they wanted to keep. Especially since COVID-19 has changed eating and exercise habits, assessing the fit of Banner Design clothing can be even more difficult. This can mean that buyers are ordering multiple sizes with the intention of returning the wrong option.